Robert paid $100 for a stock one year ago. The total return on the stock was 10 percent. This means that the stock must be selling for $110 today.

Question

Quizplus · Accepted Answer

The total return on the stock includes both capital appreciation and any dividends received. It is possible that the stock appreciated in value by 10% but also paid out a dividend, resulting in a total return that is greater than 10%. Additionally, factors such as supply and demand in the market can also affect the current price of the stock. Therefore, it cannot be assumed that the stock is selling for $110 today.

Robert Paid $100 for a Stock One Year Ago